How AMD’s Collaboration with Microsoft Could Keep Them Competitive with Nvidia

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So, Microsoft says they’re sticking with AMD for the chips in the new Xbox. No shocker there, really, but it’s still a bit of a feather in AMD’s cap. It could mean something good for gamers too—or not. Time will tell.

This deal is like winning the lottery for AMD, with probably gazillions of chips to sell over the next-gen console’s life. Think about it—Microsoft is talking about expanding into portable gaming too, which just piles on the orders for AMD.

Now, if you’re someone who feels neglected by Nvidia—and let’s face it, they’ve been eyeing AI more than gaming lately—this might be a sign that AMD’s here for the long haul in gaming. Microsoft has this whole thing of using fancy tech in their Xboxes, unlike Nintendo, who seem fine with keeping things chill and simple.

Anyway—actually, back to AMD—they’ve gotta keep their game tight with graphics performance. Nobody wants a sluggish console, right?

And what does this mean for Xbox, you ask? Glad you did. It’s kind of what everyone saw coming. Microsoft has been all chummy with AMD for a couple of generations now, like when they launched Xbox One. Their CPUs and GPUs work like a charm together—despite Nvidia hogging the PC spotlight. Stick with what you know, I guess?

This could also make sure old games work on the new Xbox, thanks to similar hardware foundations. Handy for developers too—less of a headache. And looking back, the Xbox Series X/S ran on Zen 2 CPUs and RDNA 2 GPUs, so expect the next Xbox to jazz things up with fresh versions of those.

Then there’s this wild guessing game about what AMD’s cooking up for the new Xbox. They’ve got their release timings dialed, matching console launches with new PC hardware. So, who knows? Maybe something like Zen 6 CPUs or even that mysterious UDNA architecture.

They’ve teased handheld Xbox systems too. AMD’s Z-series seems to be the go-to for these, so maybe think Zen 6 APUs here?

Switching gears to software—will Xbox consoles finally run full-on Windows? They’ve been inching closer each generation. The latest ones use Windows 11 cores. And those Asus handheld Xbox things? Standard Windows through and through. I wouldn’t bet against the next Xbox running something Windows-based—it just feels right. Microsoft’s been blurring these lines for ages. They even have this “Xbox PC” thing going, trying to mash up the whole gaming platform situation.

This strategy could matter as Linux is itching for a fight in gaming, with the Steam Deck and Linux desktops doing their thing. Microsoft might end up pitching Xbox as this seamless transition between PC and console, taking a jab at SteamOS.

Oh, AMD—what a win this is for them, huh? Their gaming revenue took a hit recently, so this is like a financial lifeline. They’ll be all fired up to stay competitive, especially as Nvidia keeps showing off with ray tracing and AI magic. Nvidia’s been running the AI show, no doubt, but any stumble—and AMD could step in to snag opportunities.

Nvidia’s been swamped with chip demand, focusing on data centers more than gaming. Now, AMD may not have the massive global reach or software clout Nvidia does, but they’re not sitting ducks. They’ve got the chops to make things happen, and this Xbox partnership might just keep them in the race.

For Nvidia, gaming is no longer the big cheese—it’s like a side note next to their AI stuff now. But for AMD, being behind the curtain of the next Xbox keeps them in people’s minds and pockets.

AMD won’t turn into a trillion-dollar giant overnight—ha, if only—but this deal’s still a pretty sweet one for them. If they play it smart, they might just stir up the GPU market more than we’d expect.

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